Burcon Nutrascience (BU) AI Stock Analysis

• Market Cap: $50.12M
• Dividend Yield: N/A
• Average Volume (3M): 20.43K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.39
• Revenue Growth: 83.65%
• EPS Growth: 3.91%
• Country: CA
• Employees: 25
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): -0.34
• Shares Outstanding: 12,688,076
• 10 Day Avg. Volume: 36,843
• 30 Day Avg. Volume: 20,430
• PEG Ratio: >-0.01
• Price to Book (P/B): 7.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 34 Underperform
• Price Target: ―

Burcon NutraScience's overall stock score reflects significant financial challenges, which weigh heavily on its potential. Despite positive developments from recent earnings calls and strategic initiatives, the company's precarious financial position, marked by recurring losses and dependence on external financing, presents substantial risks. Technical indicators and valuation metrics also suggest caution, with no clear signals of immediate improvement.

Burcon Nutrascience Business Overview & Revenue Model

Company Description

Burcon NutraScience Corporation, together with its subsidiaries, develops plant proteins and ingredients for use in the food and beverage industries in Canada. The company's products include Peazazz, a pea protein for use in dairy alternatives, ready-to-drink beverages, dry blended beverages, bars, baked goods, and meat substitute products; and Peazac and Peazac 850, a pea protein for plant-based meat alternative products, ready-to-mix powders, ready-to-mix beverages, dairy alternatives, and nutrition bars, as well as other applications requiring the most neutral flavor and moderate viscosity. It provides Puratein, a canola protein isolate for use in meat alternatives, such as burgers, sausages, and nutrition bars; Supertein, a canola protein that is a light-colored powder for use in non-dairy frozen desserts, egg alternative, plant-based marshmallows and ready-to-mix beverages, whipped toppings, and plant-based bars; and Nutratein, a canola protein comprising a mixture of globulin and albumin proteins for use in meat and egg alternatives, and other plant-based functional foods. In addition, the company offers Nutratein-PS and Nutratein-TZ, a blend of Peazac pea protein; and CLARISOY, a soy protein for use in sports nutrition beverages, citrus-based drinks, fruit-flavored beverages, lemonades, powdered beverage mixes, and other foods and nutritional products. Further, it provides MeritPro, a nutritional protein blend, including allergen-free, gluten-free, non-dairy, non-GMO, and vegan. The company was formerly known as Burcon Capital Corp. and changed its name to Burcon NutraScience Corporation in October 1999. The company was incorporated in 1998 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Burcon Nutrascience generates revenue primarily through licensing agreements and strategic partnerships with food and beverage manufacturers. The company licenses its proprietary protein extraction and purification technologies to partners who use them to produce plant-based proteins at a commercial scale. Burcon earns royalties based on the sales of these proteins. Additionally, the company may receive milestone payments and other financial incentives from its partners. Burcon's key partnerships, such as those with Merit Functional Foods, play a significant role in its revenue model. The company also invests in ongoing research and development to expand its portfolio of plant-based protein technologies, aiming to capture a larger share of the growing plant-based protein market.

Burcon Nutrascience Financial Statement Overview

Summary

Burcon Nutrascience faces significant financial challenges across income, balance sheet, and cash flow metrics. With recurring losses and a deteriorating equity position, the company is in a precarious financial state. The reliance on external financing could pose risks if not managed carefully. Immediate strategic changes are required to stabilize and improve financial health.

Income Statement

The company has shown inconsistent revenue growth, with a notable decline in revenue over the TTM period. The gross profit margin is negative, indicating issues with cost management. Both EBIT and net profit margins are significantly negative, reflecting ongoing operational and profitability challenges.

Balance Sheet

The balance sheet indicates a concerning financial structure. The company has a negative stockholders' equity and a high debt-to-equity ratio, suggesting potential insolvency risks. The equity ratio is negative, raising alarms about the company's financial stability.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, indicating insufficient internal cash generation. The company is heavily reliant on external financing, as shown by the positive financing cash flow. The free cash flow to net income ratio is unfavorable, further highlighting financial stress.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	338.57K	184.36K	363.91K	171.47K	258.65K	31.13K
Gross Profit	-540.57K	-518.82K	363.91K	171.47K	-527.31K	-815.00K
EBITDA	-7.30M	-6.74M	-18.90M	-9.92M	2.87M	-3.69M
Net Income	-8.08M	-7.45M	-25.36M	-10.26M	-617.49K	-4.63M
Balance Sheet
Total Assets	8.53M	12.91M	9.90M	29.35M	37.72M	31.27M
Cash, Cash Equivalents and Short-Term Investments	591.02K	4.20M	1.46M	7.00M	13.97M	15.03M
Total Debt	7.80M	6.67M	5.17M	73.14K	33.70K	6.73M
Total Liabilities	8.62M	7.76M	5.76M	1.10M	1.45M	8.32M
Stockholders Equity	-82.24K	5.15M	4.14M	28.25M	36.27M	22.95M
Cash Flow
Free Cash Flow	-6.42M	-5.90M	-6.38M	-7.18M	-5.91M	-4.31M
Operating Cash Flow	-6.18M	-5.78M	-6.02M	-5.91M	-3.03M	-2.74M
Investing Cash Flow	-191.93K	-39.49K	-4.43M	-1.23M	-2.72M	-14.57M
Financing Cash Flow	6.25M	8.56M	4.90M	174.08K	4.70M	31.85M

Burcon Nutrascience Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BU, the sentiment is Positive. The current price of 3.95 is above the 20-day moving average (MA) of 2.90, above the 50-day MA of 2.34, and above the 200-day MA of 2.10, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 66.72 is Neutral, neither overbought nor oversold. The STOCH value of 61.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BU.

Burcon Nutrascience Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$26.88B	15.06	-4.01%	3.23%	1.02%	2.11%
BU	34 Underperform	$50.12M	―	-137.64%	―	83.65%	3.91%
DTEAF		$21.65M	―	-4.42%	―	―	―
PNGA	27 Underperform	C$4.04M	―		―	-97.30%	39.70%
GFCO	25 Underperform	C$48.08M	―	82.98%	―	27.66%	63.69%
BABYF		$4.97M	―	-351.09%	―	―	―
NPRFF		$6.47M	―		―	―	―

Burcon Nutrascience Corporate Events

Burcon Advances Plant-Based Protein Production at Galesburg Facility

Burcon NutraScience Corporation has successfully installed and commissioned its proprietary protein processing equipment at its Galesburg, Illinois facility, marking a significant step in its operational expansion. This development positions Burcon to scale up production, optimize operations, and enhance commercial partnerships, reinforcing its role as a key player in the expanding plant-based protein market.

Burcon’s Alliance Partner Acquires Key Protein Production Facility

Burcon NutraScience Corporation announced that its alliance partner, RE ProMan, LLC, has completed the acquisition of a protein production facility in Galesburg, Illinois. This acquisition allows Burcon to integrate its technologies into the facility, which is strategically located for efficient production and distribution. The facility’s acquisition marks a significant milestone for Burcon, providing the company with full operational control of a commercial facility for the first time. This development enables Burcon to deliver high-quality, sustainable plant-based protein solutions, meeting growing consumer demand and accelerating market adoption of its innovative protein ingredients.

Burcon Raises $9.43 Million in Successful Rights Offering

Burcon NutraScience Corporation has successfully completed a rights offering, raising approximately $9.43 million through the issuance of over 110 million common shares. The proceeds are intended to support the commercialization and production scaling of Burcon’s protein products, alongside funding a manufacturing agreement with RE ProMan, LLC. The rights offering was well-supported by strategic investors and insiders, solidifying Burcon’s capital position to pursue growth opportunities.

Burcon NutraScience Advances with Facility Control and Product Launches in Q3 2025

Burcon NutraScience Corporation reported significant advancements in its operations during the fiscal third quarter of 2025, notably gaining full operational control of a protein production facility. This strategic move, in partnership with Re ProMan LLC, is pivotal in Burcon’s commercialization efforts and reflects confidence in their market potential. The company also launched several new protein products, entered collaborations to explore new applications, and secured funding through a rights offering, positioning itself for accelerated growth and innovation in plant-based proteins.

Burcon Completes $9.43 Million Rights Offering, Strengthening Market Position

Burcon NutraScience Corporation has successfully completed its $9.43 million rights offering, surpassing the $7 million needed to execute its production strategy and aim for positive cash flow by 2026. This financial milestone is expected to strengthen Burcon’s market position as a leader in protein innovation, reflecting strong shareholder confidence in its strategic direction.

Burcon NutraScience to Host Virtual Investor Presentation on Future Growth

Burcon NutraScience is set to host a virtual investor presentation on February 18, 2025, to discuss recent milestones and future plans. The company will outline its strategy to bring its entire protein portfolio to market, supported by an acquisition by Re ProMan LLC. This move is expected to enhance Burcon’s market operations and drive revenue growth, reinforcing its position in the plant-based industry.